Business Performance

Good Essays
Understanding Accounting Concepts and Business Performance Evaluation

1. The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is called? Matching Principle

2. One of the following statements about the accrual basis of accounting is false. That statement is: Expense is recorded before the sales has been carried out.

3. In periods of rising prices, LIFO will produce following effect on net income:

1. Lower ending inventory and lower income

4. Rickety Company purchased 1,000 widgets and has 200 widgets in its ending inventory at a cost of $91 each and a current replacement cost of $80 each. What is the ending inventory under lower of cost or market?200*80=16000,

5. Atlantis Company's ending inventory is understated $4,000. The effects of this error on the current year's cost of goods sold and net income, respectively, are understated(overstated)/overstated(understate).

6. When there is a change in estimated depreciation when is correction made?

Current and future

7. For 2007, FP Ltd had net income of Rs1,000,000. At 1January 2007, there were 1,000,000 shares outstanding. On 1July 2007, the company issued 100,000 new shares for Rs20 per share. The company paid Rs200, 000 in dividends to common shareholders. What is FP Ltd’s basic earnings per share for 2007?

8. CSI Ltd had 1,000,000 average shares outstanding during all of 2007. During 2007, CSI also had 10,000 options outstanding with exercise prices of Rs10 each. The average stock price of CSI during 2007 was Rs15. For purposes of computing diluted earnings per share, how many shares would be used in the denominator?

9. Nutmeg, Inc. uses the LIFO method to account for inventory. During years in which inventory unit costs are generally rising and in which the company purchases more inventory than it sells to customers. What is the impact on gross profit compared with FIFO method?

10. SC Ltd reported 2007

You May Also Find These Documents Helpful

  • Powerful Essays

    Running Head: Business Performance Measures in Vodafone Group Business Performance Measures in Vodafone Group Toru Sekiguchi August 8th, 2010 i Table of Contents Title Page…………………………………………………………………………………............ i Table of Contents…………………………………………………………………….................. ii Abstract…………………………………………………………………………….................... iii 1. Introduction…………………………………………………………………………………. 1 2. Building a coherent set of performance measures………………………………………... 2 2.1 Performance Measures……………………………………………………………

    • 8208 Words
    • 33 Pages
    Powerful Essays
  • Powerful Essays

    Business Performance Review

    • 3618 Words
    • 15 Pages

    M6 Assignment 2 – Term 3 Module 6 Management Accounting for Hospitality 2011 M6 Assignment 2 – Business Performance Review DEBI MARCHAND CONTENTS: 3.1) Source and structure of the trial balance PAGE: 3 3.2) Evaluation of a range of business accounts, adjustments and notes 3.3) Process and purpose of budgetary control TO 3.4) Calculation of variances with suggestions for appropriate future management…

    • 3618 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    3rd Year Dissertation Is stock market performance linked to business performance? Abstract Still in the heart of an unprecedented financial crisis, new questions came up about the working of the stock market. In the eyes of general public the stock market can seem a lot like gambling to the extent that this one was reconsidered. The stock market index seems to be valuating at random, especially since the last financial crisis. But the fact that stock market plays an important role in the…

    • 4871 Words
    • 20 Pages
    Powerful Essays
  • Better Essays

    SUSTAINABLE BUSINESS PERFORMANCE SUMMARY NIKE, INC. FY10/11 Note: The information in this report and NIKE, Inc.’s corporate responsibility/sustainability reporting and website, inclusive of charts, graphs and discussion, and all other information presented, may contain forward-looking statements, estimates or projections based on expectations as of the original date of those materials. Those statements, estimates and projections are subject to certain risks and uncertainties that could cause…

    • 41592 Words
    • 167 Pages
    Better Essays
  • Satisfactory Essays

    H M Business Performance

    • 440 Words
    • 5 Pages

    WELCOME Group Name: Concord Name Of The Members  Israt Jahan (Sub-Leader)  Salma Begum 1397 1407  Ridwan Binte Mahbub Borsha  Sajedur Rahman 1408 1417  Md. Shahnewaj (Leader)  Md. Al-Amin 1422  Bipul Chandra Mondal  Sadia Khanom 1954  Shima Sarker 1918 1426 2114 Our Presentation on CORPORATION : H&M (Hennes & Mauritz)  Introduction.  Products of H & M.  Analysis of Current Position.  Porter’s 5 Forces Industrial Analysis.  SWOT Analysis.  Advantages.  Disadvantages…

    • 440 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    IAS 18 Income is defined as the increase in economic benefits. This is achieved through increase in assets or decrease in liabilities. And this would ultimately result in the increase in equity. Revenue is income generated through: sales, fee, interest, dividends and royalties. Objective of IAS 18 is to tell the accounting treatment of revenue. Revenue is recognized when it is certain that economic benefits would arise and if these benefits are measurable. Previous IAS 18 was approved…

    • 959 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Audit and Assurance (International) Wednesday 9 December 2009 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall. The Association…

    • 1768 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    An Evaluation of the Business and Financial Performance Of Tesco Plc Between 25th Feb2009 and 28th Feb 2011 After reading all twenty diversified approved project topic. I have chosen topic number eight, ‘The business and financial performance of an organisation over a three year period.’ . In my opinion the analysis of business and financial performance of a company is one of the most important aspects of the modern day accounting profession and therefore, I decided to opt for this topic…

    • 260 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    working title for the research: “Investigating the relationship between Market Orientation and Business Performance of SMEs in Pakistan”. Definition of the research: Market orientation a term used by marketers as indicator of the degree to which firm implements its marketing concept (Komppula and Reijonen, 2010). A market oriented firm has a greater ability in achieving higher performance compared to non-market oriented firm (Agarwal et al., 2003). The concept of market orientation has…

    • 4602 Words
    • 19 Pages
    Powerful Essays
  • Satisfactory Essays

    Performance and Value Business 530, Week 6 It’s commonly known that Christians use the Bible as a guide to salvation and to assist in having a stable loving family and home life. However, the Bible is far more useful than many imagine. The Bible is also a resource for the workplace. The first day on the job is often stressful; however, the Bible provides comfort with Psalm 23, “The Lord is my shepherd…” (NIV) Besides comfort, the Bible is a guide to proper performance in the workplace. Along…

    • 409 Words
    • 2 Pages
    Satisfactory Essays